📊 APA Key Takeaways
Is APA Corp (APA) a Good Investment?
APA Corp demonstrates exceptional financial performance with $4.5B in operating cash flow, 23.5% ROE, and strong profitability generating $1.4B net income. The company maintains solid interest coverage of 9.6x and a moderate debt/equity ratio of 0.74x, indicating healthy financial leverage for a capital-intensive energy producer. Significant insider activity (48 Form 4 filings) combined with strong cash generation suggests management confidence in fundamental value.
APA shows solid core profitability and cash generation, with $3.09B of operating income, $1.43B of net income, 23.5% ROE, and $4.54B of operating cash flow. Balance sheet leverage appears manageable with 0.74x debt-to-equity and 9.6x interest coverage, but sub-1.0 liquidity ratios and missing or inconsistent line items, including reported revenue of $0.00, reduce confidence in the quality and durability of the current fundamental picture.
Why Buy APA Corp Stock? APA Key Strengths
- Exceptional operating cash flow of $4.5B with 100% conversion to free cash flow demonstrates high-quality earnings
- Outstanding return on equity of 23.5% and ROA of 8.1% indicate efficient asset utilization and capital deployment
- Strong interest coverage ratio of 9.6x provides substantial debt service capacity and financial flexibility
- Robust net income of $1.4B with 75.8% EPS growth year-over-year shows accelerating per-share value creation
- Manageable debt-to-equity ratio of 0.74x balances leverage benefits with financial stability
- Strong operating profitability supported by $3.09B in operating income and healthy returns on equity and assets
- Robust cash generation with $4.54B in operating cash flow and reported free cash flow matching that level
- Leverage appears reasonable for the business with 0.74x debt-to-equity and solid 9.6x interest coverage
APA Stock Risks: APA Corp Investment Risks
- Current ratio of 0.82x and quick ratio of 0.69x indicate potential near-term liquidity pressure and working capital constraints
- Operating margin transparency is absent, limiting visibility into operational efficiency trends and margin sustainability
- Commodity price exposure inherent to crude oil and natural gas creates revenue volatility and earnings unpredictability
- Capital expenditure data unavailable prevents assessment of reinvestment adequacy and long-term competitive positioning
- Zero reported revenue with operational income and net income present suggests potential data classification issues requiring clarification
- Weak near-term liquidity, with a 0.82x current ratio and 0.69x quick ratio, could pressure flexibility if commodity conditions weaken
- Financial data quality is impaired by missing or inconsistent inputs such as $0.00 revenue, limiting confidence in margin and growth analysis
- The business remains fundamentally exposed to earnings and cash flow volatility typical of crude oil and natural gas producers
Key Metrics to Watch
- Free cash flow conversion ratio and sustainability of $4.5B FCF generation
- Debt reduction trajectory and long-term debt management relative to $4.5B LTD
- Operating cash flow trends and working capital efficiency to address liquidity ratio concerns
- Capital expenditure levels and maintenance capex versus growth capex allocation
- Insider transaction patterns and aggregate insider position changes
- Operating cash flow and true free cash flow after capital expenditures
- Liquidity and leverage trends, especially current ratio, cash balance, and long-term debt
APA Corp (APA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
APA Profit Margin, ROE & Profitability Analysis
APA vs Energy Sector: How APA Corp Compares
How APA Corp compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is APA Corp Stock Overvalued? APA Valuation Analysis 2026
Based on fundamental analysis, APA Corp has mixed fundamental signals relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
APA Corp Balance Sheet: APA Debt, Cash & Liquidity
APA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: APA Corp's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $9.25 reflects profitable operations.
APA Revenue Growth, EPS Growth & YoY Performance
APA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2021 | N/A | $316.0M | $0.82 |
| Q1 2021 | N/A | $388.0M | $1.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
APA Corp Dividends, Buybacks & Capital Allocation
APA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for APA Corp (CIK: 0001841666)
📋 Recent SEC Filings
❓ Frequently Asked Questions about APA
What is the AI rating for APA?
APA Corp (APA) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (HOLD) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are APA's key strengths?
Claude: Exceptional operating cash flow of $4.5B with 100% conversion to free cash flow demonstrates high-quality earnings. Outstanding return on equity of 23.5% and ROA of 8.1% indicate efficient asset utilization and capital deployment. ChatGPT: Strong operating profitability supported by $3.09B in operating income and healthy returns on equity and assets. Robust cash generation with $4.54B in operating cash flow and reported free cash flow matching that level.
What are the risks of investing in APA?
Claude: Current ratio of 0.82x and quick ratio of 0.69x indicate potential near-term liquidity pressure and working capital constraints. Operating margin transparency is absent, limiting visibility into operational efficiency trends and margin sustainability. ChatGPT: Weak near-term liquidity, with a 0.82x current ratio and 0.69x quick ratio, could pressure flexibility if commodity conditions weaken. Financial data quality is impaired by missing or inconsistent inputs such as $0.00 revenue, limiting confidence in margin and growth analysis.
What is APA's revenue and growth?
APA Corp reported revenue of $0.0.
Does APA pay dividends?
APA Corp pays dividends, with $360.0M distributed to shareholders in the trailing twelve months.
Where can I find APA SEC filings?
Official SEC filings for APA Corp (CIK: 0001841666) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is APA's EPS?
APA Corp has a diluted EPS of $3.99.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is APA a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, APA Corp has a BUY rating with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is APA stock overvalued or undervalued?
Valuation metrics for APA: ROE of 23.5% (sector avg: 14%), net margin of N/A (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy APA stock in 2026?
Our dual AI analysis gives APA Corp a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is APA's free cash flow?
APA Corp's operating cash flow is $4.5B, with capital expenditures of N/A.
How does APA compare to other Energy stocks?
Vs Energy sector averages: Net margin N/A (avg: 12%), ROE 23.5% (avg: 14%), current ratio 0.82 (avg: 1.3).